DaVita Inc. (DVA) vs Encompass Health Corporation (EHC)

DaVita Inc. and Encompass Health Corporation are both Medical Care Facilities companies. DaVita Inc. and Encompass Health Corporation are of similar size ($12.0B and $11.2B). DaVita Inc. trades at the lower P/E: 14.3× against 19.9×. Encompass Health Corporation grew revenue faster over the last twelve months: 9.47% against 6.45%. Encompass Health Corporation has the higher net margin (10.0% vs 6.05%) and the lower return on invested capital (11.8% vs 13.9%). Across the 21 metrics below, DaVita Inc. leads on 11 and Encompass Health Corporation on 10.

Valuation

Metric DVA EHC Medical Care Facilities median
P/E 14.30 19.85 19.16
P/S 0.83 1.97 0.90
P/B n/m 3.58 2.91
Price to free cash flow 6.43 31.78 12.62
EV/EBITDA 7.61 10.00 10.06
EV/Sales 1.54 2.37 1.35
Earnings yield 6.99% 5.04% 2.30%
Free cash flow yield 15.56% 3.15% 4.14%

Profitability

Metric DVA EHC Medical Care Facilities median
Gross margin 32.36% 100.00% 30.78%
Operating margin 15.19% 17.94% 5.74%
Net margin 6.05% 10.01% 2.32%
Free cash flow margin 11.61% 6.66% 5.46%
Return on equity (287.31%) 19.30% 8.76%
Return on assets 4.81% 8.72% 2.18%
Return on invested capital 13.90% 11.79% 5.40%

Growth

Metric DVA EHC Medical Care Facilities median
Revenue growth (TTM) 6.45% 9.47% 7.12%
EPS growth (last fiscal year) (8.29%) 24.22% —
Revenue growth, 5-year CAGR 3.39% 10.72% 9.58%
Net income growth, 5-year CAGR (0.70%) 14.78% 0.00%

Health

Metric DVA EHC Medical Care Facilities median
Debt to equity (22.44) 0.77 0.30
Current ratio 1.47 1.19 1.22
Net debt to EBITDA 3.51 1.72 1.32

Dividend

Metric DVA EHC Medical Care Facilities median
Dividend yield — 0.82% 0.85%
Payout ratio 0.00 0.17 0.00

Size

Metric DVA EHC Medical Care Facilities median
Market cap 11.20b 12.04b 1.34b

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